Computer-Implemented Methods, Program Product, And System To Enhance Banking Terms Over Time

• US 20090164364A1
• Filed: 12/18/2008
• Published: 06/25/2009
• Est. Priority Date: 12/21/2007
• Status: Active Grant

• Current Assignee: Pathward National Association
• Original Assignee: MetaBank (Meta Financial Group Incorporated)
• Inventors: Sorbe, Trent, Galit, Scott
• Granted Patent: US 8,108,279 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Managing access to a line of credit, for example, can include a financial institution computer determining eligibility for a line of credit program responsive to a consumer'"'"'s prior enrollment in a prepaid card program and one or more of the following: the consumer'"'"'s historical direct deposit data, and data associated with the consumer'"'"'s historical behavior in the prepaid card program. The financial institution computer can extend an amount of available credit to the consumer through the line of credit program so that a consumer credit limit is capped through underwriting criteria to ensure that no more than a predetermined percentage of a consumer'"'"'s historic direct deposit amount is required for minimum repayments. The financial institution computer can farther receive loan repayments over one or more predetermined direct deposit periods and change the consumer credit limit by preselected increments responsive to a change in the consumer'"'"'s direct deposit amount.

Claims

1. A system to manage access to a line of credit, the system comprising:

a plurality of customer access interface devices;

a remote computer server positioned to provide communication with each of the plurality of customer access interface devices and being associated with a financial institution, the computer server having memory; and

a program product stored in the memory of the computer server so that the program product operates to perform the following set of instructions;

determining eligibility for a line of credit program from a financial institution responsive to a consumer'"'"'s prior enrollment in a prepaid card program and one or more of the following;

the consumer'"'"'s historical direct deposit data, and data associated with the consumer'"'"'s historical behavior in the prepaid card program,

enrolling the consumer in the line of credit program through an on-line process, the consumer having been determined eligible, enrollment being responsive to an acceptance of terms and conditions of the line of credit program by the consumer,

extending an amount of available credit to the enrolled consumer through the line of credit program defining a consumer credit limit, the consumer credit limit being capped through underwriting criteria to ensure that no more than a predetermined percentage of a consumer'"'"'s historic direct deposit amount is required for minimum repayments associated with the line of credit program,

receiving authorization for an advance under the line of credit program from the consumer so that the consumer authorizes all advances,

assessing a loan advance fee of a predetermined percentage of the value of the advance,

receiving loan repayments over one or more predetermined direct deposit periods, and

changing the consumer credit limit by preselected increments responsive to a change in the consumer'"'"'s direct deposit amount.

3. A system of claim 1, wherein the instruction of determining eligibility for a line of credit program further includes requiring a minimum age and a government screening process, and wherein the instructions farther include notifying the consumer of changes in the consumer credit limit through one or more of the following:

e-mail, and traditional mail.

4. A system of claim 1, wherein the instructions further include suspending access to funds under the line of credit program if one or more of the following events occur:

a missed payment, an interruption in direct deposits, a negative card balance, and a preselected threshold number of consecutive loans from the line of credit program within a preselected time period.

5. A system of claim 1, wherein the instructions further include cancelling an advance through a call to a customer service center, wherein the instruction of receiving loan repayments over one or more predetermined direct deposit periods includes an electronic check for payment, and wherein loan repayment from direct deposit funds occurs prior to the direct deposit funds being made available in the consumer'"'"'s account.

6. A system of claim 1, wherein the financial institution is a federally chartered bank and the line of credit program is bank product so that the line of credit program complies with federal Regulation Z.

2. A system of claim 2, wherein the consumer'"'"'s prior enrollment in a prepaid card program involves a line of credit program which provides finds only in one or more preselected increments.

7. A program product stored in one or more tangible computer readable media and readable by a computer so that the program product operates to perform the following instructions when read by the computer:

determining eligibility for a line of credit program from a financial institution responsive to a consumer'"'"'s prior enrollment in a prepaid card program and one or more of the following;

the consumer'"'"'s historical direct deposit data, and data associated with the consumer'"'"'s historical behavior in the prepaid card program;

extending an amount of available credit to the enrolled consumer through the line of credit program defining a consumer credit limit, the consumer credit limit being capped through underwriting criteria to ensure that no more than a predetermined percentage of a consumer'"'"'s historic direct deposit amount is required for minimum repayments associated with the line of credit program; and

receiving loan repayments over one or more predetermined direct deposit periods.

8. A program product of claim 7, wherein the instructions further comprise

receiving authorization for an advance under the line of credit program from the consumer so that the consumer authorizes all advances;

changing the consumer credit limit by preselected increments responsive to a change in the consumer'"'"'s direct deposit amount;

assessing a loan advance fee of a predetermined percentage of the value of the advance; and

cancelling an advance through a call to a customer service center.

9. A program product of claim 7, wherein the consumer'"'"'s prior enrollment in a prepaid card program involves a line of credit program which provides funds only in one or more preselected increments.

10. A program product of claim 7, wherein the instruction of determining eligibility for a line of credit program further includes requiring a minimum age and a government screening process, and wherein the instructions further comprise notifying the consumer of changes in the consumer credit limit through one or more of the following:

e-mail, and traditional mail.

11. A program product of claim 7, wherein the instructions further comprise suspending access to funds under the line of credit program if one or more of the following events occur:

a missed payment, an interruption in direct deposits, a negative card balance, and a preselected threshold number of consecutive loans from the line of credit program within a preselected time period.

12. A program product of claim 7, wherein the instruction of receiving loan repayments over one or more predetermined direct deposit periods includes an electronic check for payment, and wherein loan repayment from direct deposit funds occurs prior to the direct deposit funds being made available in the consumer'"'"'s account.

13. A program product of claim 7, wherein the financial institution is a federally chartered bank and the line of credit program is bank product so that the line of credit program complies with federal Regulation Z.

14. A computer-implemented method of managing access to a line of credit, the computer-implemented method comprising;

determining eligibility for a line of credit program from a financial institution by a computer associated with the financial institution defining a financial institution computer responsive to a consumer'"'"'s prior enrollment in a prepaid card program and one or more of the following;

the consumer'"'"'s historical direct deposit data, and data associated with the consumer'"'"'s historical behavior in the prepaid card program;

extending an amount of available credit to the consumer by the financial institution computer through the line of credit program defining a consumer credit limit, the consumer credit limit being capped through underwriting criteria to ensure that no more than a predetermined percentage of a consumer'"'"'s historic direct deposit amount is required for minimum repayments associated with the line of credit program; and

receiving loan repayments over one or more predetermined direct deposit periods by the financial institution computer.

15. A computer-implemented method of claim 14, further comprising:

receiving authorization for an advance under the line of credit program from the consumer by the financial institution computer so that the consumer authorizes all advances;

changing the consumer credit limit by preselected increments by the financial institution computer responsive to a change in the consumer'"'"'s direct deposit amount;

assessing a loan advance fee of a predetermined percentage of the value of the advance by the financial institution computer; and

cancelling an advance through a call to a customer service center by the financial institution computer.

16. A computer-implemented method of claim 14, wherein the consumer'"'"'s prior enrollment in a prepaid card program involves a line of credit program which provides funds 1only in one or more preselected increments.

17. A computer-implemented method of claim 14, wherein the step of determining eligibility for a line of credit program further includes requiring a minimum age and a government screening process, and farther comprising notifying the consumer of changes in the consumer credit limit through one or more of the following:

e-mail, and traditional mail.

18. A computer-implemented method of claim 14, further comprising suspending access to funds under the line of credit program by the financial institution computer if one or more of the following events occur:

a missed payment, an interruption in direct deposits, a negative card balance, and a preselected threshold number of consecutive loans from the line of credit program within a preselected time period.

19. A computer-implemented method of claim 14, wherein the step of receiving loan repayments over one or more predetermined direct deposit periods by the financial institution computer includes an electronic check for payment, and wherein loan repayment from direct deposit funds occurs prior to the direct deposit funds being made available in the consumer'"'"'s account.

20. A computer-implemented method of claim 14, wherein the financial institution is a federally chartered bank and the line of credit program is bank product so that the line of credit program complies with federal Regulation Z.